Desjardins Securities analyst Frédéric Tremblay has raised his purpose on 5N Plus (5N Plus Stock Quote, Chart, Info, Analysts, Financials TSX:VNP) to $17.50 from $14.00 in an August 5 report, sustaining a “Buy” rating.
The model new purpose depends on 13.5x his 2026 Adjusted EBITDA forecast, up from 12.5x, which he acknowledged “is spherical present highs” and shows the company’s “spectacular” year-to-date effectivity and expanded visibility.
Following the company’s second-quarter outcomes, Tremblay acknowledged 5N Plus is “firing on all cylinders.” He pointed to “one different spectacular quarterly beat, a model new and expanded present settlement with First Photograph voltaic, and an increase in its 2025 steering.”
“The long term continues to look vibrant, along with sturdy demand momentum in Specialty Semiconductors (eg First Photograph voltaic, AZUR) and healthful margins in Effectivity Provides,” he acknowledged. “We depend on VNP to beat its updated 2025 steering.”
5N Plus reported Q2 Adjusted EBITDA of US$24.1-million, up 79% yr over yr and correctly ahead of Tremblay’s US$18.0-million forecast and the US$17.9-million Avenue estimate. Revenue rose 27.8%, with margins coming in larger than anticipated.
“Key tailwinds included bigger amount (which drove economies of scale) inside the terrestrial renewable vitality and home photo voltaic power sectors, and higher prices,” he acknowledged.
As reported by the Globe and Mail, Tremblay highlighted the company’s new settlement with First Photograph voltaic, saying, “VNP’s manufacturing and provide of CdTe to First Photograph voltaic for the 2025–26 interval may be 33% bigger than the preliminary contract ranges.”
He added {{that a}} new two-year extension for 2027–28 requires a “25% enhance in CdTe volumes” versus the sooner time interval, and well-known that “VNP expects to fulfill this essential amount enhance with minimal capex.”
5N Plus raised its 2025 EBITDA steering to US$65–70-million, up from US$55–60-million.
Tremblay referred to as the updated outlook “conservative,” pointing to US$44.9-million already generated inside the first half.
“Considering this spectacular year-to-date effectivity and the company’s constructive demand and margin outlook in 2H25 and previous, we’re making essential upward revisions to our estimates,” he acknowledged.
He now expects US$76.1-million in EBITDA in 2025 and US$87.2-million in 2026.
“Considering the overwhelmingly constructive updates (eg 2Q beat, new First Photograph voltaic settlement, steadiness sheet energy), we view an enlargement of the valuation quite a few as warranted,” Tremblay acknowledged. “We’re elevating our quite a few to 13.5 cases (from 12.5 cases) on our 2026 Adjusted EBITDA estimate, which is spherical present highs (matching, in our view, present report outcomes). This drives a purpose enhance.”
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